If the Demand for Bananas Has a High Price Elasticity

question 98

Multiple Choice

If the demand for bananas has a high price elasticity, then a 5 percent decrease in the price of bananas will result in

• A)a more than 5 percent increase in the quantity demanded.
• B)a less than 5 percent increase in the quantity demanded.
• C)no change in the quantity demanded.
• D)a more than 5 percent decrease in the quantity demanded.
• E)a less than 5 percent decrease in the quantity demanded.

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